After news that the Chinese intend to regulate ICOs, and in general have a less than favorable opinion thereof, is the tanking price of Ethereum. People can draw one or two conclusions from it, notably that a lot of Asian influence is there in that price. In both the dumping of the coins and the confidence in the overall ICO market, we see a stumbling over the weekend, from significant gains over the past weeks.
Ironically, one of the ICOs greatly affected by the news of Chinese regulation is the Red Pulse ICO, which aims to put an end to Chinese rumor mills among other problems of opacity that investors face with the Asian market. For their part, Red Pulse have limited participants from both the US and China, and are requiring KYC regulations be met before investing.
While we can accept that Chinese sell-offs are a good explanation for hyper recent changes in the price, we must also confess that the market might have taken any excuse to step on the brakes a bit. While a long-view analysis tells us that we’re still very much in a price discovery phase across the board as cryptocurrencies go, there is definitely some wisdom to be gained from the previous “crypto bubble,” which saw Bitcoin reach highs of $1,200 and later, over a long period of time, drop to beneath $100.